How to apply for a credit card or loan payment holiday and get a 0% overdraft of £500
STRUGGLING households have been given a glimmer of hope as banks have been told this week to do more to help borrowers.
City watchdog, the Financial Conduct Authority (FCA) wants banks and building societies to give credit card and loan customers a break from payments if they've been hit financially during the coronavirus crisis.
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It's also demanded lenders boost agreed overdrafts to £500 interest-free.
These measures are on top of the three-month mortgage holidays chancellor Rishi Sunak has already told lenders to offer.
The FCA hopes banks will agree to the new guidance or even go above and beyond it.
Plans are currently being consulted on with a view to introduce the initiatives late next week.
This unfortunately means you can't apply for the new measures yet.
What help are banks offering during the coronavirus crisis?
HERE are the coronavirus help pages for all the major banks so you can see what help you may be eligible for - and how to apply for it.
Also see our round-up of the loans, overdrafts, and credit card help being offered by major banks.
Is there help I can apply for now?
In the meantime, many banks are already offering varying levels of help on loans, credit cards, and overdrafts that you can apply for now.
Examples of help include up to three month payment holidays on credit cards, with some providers also waiving fees and interest.
Elsewhere, overdrafts have been increased by some lenders to £300 interest-free, while others have held off introducing pricey new interest rates.
How do I apply for help?
We've rounded-up the coronavirus help pages for all the major providers in the box above, which you can check to see what's being offered and how to apply.
Some help, such as waiving fees and charges is being done automatically, so you won't need to apply for it.
Other help, such as applying for a repayment holiday or an overdraft increase, require you to complete an online form or login to your online banking.
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You'll be able to apply for the majority of help online and banks are encouraging people not to call or visit branches.
If you do call, bear in mind phone lines are busier than normal, and if you're an NHS worker check to see if special phone times are being offered for you.
Many branches are still open but with reduced hours and banks are encouraging people to only visit if absolutely necessary.
Meanwhile, the Government has promised to pay up to 80 per cent of wages to prevent coronavirus job losses.
People who are not working but kept on payroll could be paid up to £2,500 a month.
However, a huge loophole in the Coronavirus Job Retention scheme could actually see thousands of people laid off.
More on coronavirus
Will any of these measures affect my credit score?
Where a repayment holiday is agreed as a result of coronavirus, the UK's three credit reference agencies - Equifax, Experian and TransUnion - say it won't impact your credit score as they'll implement an “emergency payment freeze”.
This means it won't be recorded on your file.
It also applies to reduced payments and paused payments, but not to increased credit limits or new borrowing.